Thirty-six Chinese high-tech firms, including producers of aviation equipment, chemicals, and computer chips, have been added to a blacklist for export controls by the US Department of Commerce due to concerns about US's national security and interests, as per AP's report.
If a US corporation tries to do business with one of the companies listed on the trade "Entity List," export licenses are likely to be rejected.
SAN PEDRO, CALIFORNIA - NOVEMBER 07: An American flag flies nearby with shipping containers stacked at the Port of Los Angeles in the background, which is the nation's busiest container port, on November 7, 2019 in San Pedro, California. Port officials said today October cargo volume was down 19 percent this year compared with October 2018 due to tariffs imposed in the U.S.-China trade war.
Fresh US Restrictions
The action denotes a stepping up of US efforts to stop China from getting cutting-edge technologies, including computer chips and hypersonic weapons that could be used for military purposes.
The US has been increasing its restrictions on Chinese technology over the past few years, a trend that started under President Donald Trump and has persisted under President Joe Biden's administration.
The Federal Register, which will be published on Friday, has been updated with the modifications to the Commerce Department's entity list.
According to the document, Yangtze Memory Technology Co, a computer chip manufacturer with headquarters in Wuhan, China, and its subsidiary in Japan, were placed on the list alleging that they pose risks of engaging in activities that would be against the interests of American national security or foreign policy.
The document adds that Yangtze Memory Technologies and Hefei Core Storage Electronic were included because they might serve as suppliers to both Hangzhou Hikvision Digital Technology, a business that is subject to US sanctions, and Huawei Technologies.
The US restricted the use of select China-manufactured video surveillance systems, notably Hangzhou Hikvision, and prohibited the sale of communications equipment made by Chinese firms Huawei and ZTE late last month.
Read also: China Boosts US Sanctions-Hit Chip Sector With New Funding
"Close Ties"
The document claims that firms in the Anhui Cambricon Information Technology group were or had "close ties" to government organizations supporting the Chinese military and defense industries, some of which were connected to the Chinese Academy of Sciences and the Chinese Electronics Technology group.
Some of the businesses were included on the list because they allegedly exported US equipment subject to export controls to Iran for military use or were at "risk of diversion" to other businesses list.
To prevent them from getting knowledge and goods that would enable China to develop hypersonic weapons and other military capabilities, some significant aviation suppliers were also included in the list.
According to the document, Tianjin Tiandi Weiye Technologies Co. was included because it was alleged to be connected to high-tech surveillance and human rights abuses against Muslim ethnic minorities in China's Xinjiang region.
Related Article: US-China Tech War: ASML, Lam Research Pulls American Engineers From China Amid New Chip Restrictions
